by Jim Wyckoff, Senior Analyst TraderPlanet.com
AUGUST LIVE CATTLE
Wyckoff’s Market Rating: 7.0.
AUGUST FEEDER CATTLE
August feeder cattle closed down $0.22 at $114.47 today. Prices closed near the session low today on mild profit-taking pressure after hitting a fresh contract high early on today. The bulls have gained solid upside technical momentum recently amid the big slide in corn futures prices the past couple weeks. They are looking for still more on the upside in the near term. The next upside price objective for the feeder bulls is to produce a close above solid chart resistance at today’s contract high of $115.32. The next downside price objective for the bears is to produce a close below solid support at $113.00. First resistance is seen at $115.00 and then at today’s contract high of $115.32. First support is seen at $114.00 and then at $113.50.
Wyckoff’s Market Rating: 8.0.
Source: VantagePoint Intermarket Analysis Software
AUGUST LEAN HOGS
August lean hogs closed down $0.25 at $69.85 today. Prices closed nearer the session low, amid weaker cash hog prices today. Bears still have downside technical momentum. In fact, a bear flag has formed on the daily bar chart. However, as the cattle futures continue to rebound, my bias is that at least the downside in hogs will be limited, if not pull hogs higher. The funds have shown that they can come in on the long side of hogs very quickly and forcefully. The next downside technical price objective for the bears is closing prices below solid technical support at last week’s low of $69.60. The next upside price objective for the bulls is closing prices above solid chart resistance at $72.00. First resistance is seen at today’s high of $70.50 and then at $71.00. First support is seen at today’s low of $69.75 and then at $69.60.
Wyckoff’s Market Rating: 3.0.
AUGUST PORK BELLIES
August pork bellies closed down $1.60 at $86.77 today. Prices closed at a fresh contract low close today. Bears still have technical control of bellies. A four-month-old downtrend is in place on the daily bar chart. The next upside price objective for the bulls is closing prices above solid resistance at $92.00. The next downside price objective for the bears is closing prices below solid chart support at the contract low of $85.60. First resistance is seen at $87.00 and then at $88.00. First support is seen at $85.60 and then at $85.00.
Wyckoff’s Market Rating: 1.0
